GOOD MORNING!!!
INDICES GOT OUT TO A FANTASTIC START ON THE BACK OF STRONG RESULTS POSTED BY TCS IN THE, AFTER MARKETS HOURS LAST DAY AFTER BEING SLAUGHTERED FOR THE PAST FEW DAYS OVER 4%. INDICES SURGED IN THE INITIAL HOURS OF TRADE, THERE WAS GOOD NUMBER OF POSITIONS WHICH GOT ADDED IN THE MARKET IN THE OPENING AND WITH SOME POSITION SQUARING BETWEEN THE LATE MORNING TO MID AFTERNOON SESSION LED THE INDICES TO GYRATE IN A TIGHT BAND. BUT POSITION BUILD UP GATHERED PACE IN THE DYING HOURS OF TRADE WHICH HELPED THE BOURSES TO CATCH THE MOMENTUM AND EVENTUALLY END THE SESSION WITH STRONG GAINS OF OVER A PERCENT. VOLUMES WERE NOT GREAT EXCEPT FOR THE LAST HALF AN HOUR OF TRADE BUT THE BREADTH OF THE MARKET WAS POSITIVE. THE IT COUNTER KEPT BUZZING ALL THROUGH THE DAY AND REMAINED TOP SECTORAL GAINER WITH 2.60% GAINS, INVESTORS ALSO STAYED BULLISH ON METAL AND HEALTHCARE ON THE FLIP SIDE, OIL & GAS PACK REMAINED THE ONLY LAGGARD. WE HAVE SEEN SOME GOOD AMOUNT OF SELL OFF IN RELIANCE INFRA IN THE FORM OF PROFIT BOOKING FOR THE SECOND CONSECUTIVE SESSION TO END LOWER BY 4.5%.
TODAY MARKETS WOULD OPEN ON A POSITIVE NOTE TRACKING POSITIVE CLOSING OF US AND EUROPE. TODAY IF MARKETS OPEN ABOVE 5737 THEN LIKELY TO MAKE AN UPMOVE TO 5769 LEVELS AND ANY BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5795 LEVELS AND ANY BREACH AND TRADE ABOVE THIS POINT WOULD TAKE IT TO 5824 LEVELS, ANY CLOSE ABOVE 5769 ON THE CLOSING BASIS ONE CAN RETAIN LONGS FOR THE OVERNIGHT TRADE AS WELL, ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5724 THEN LIKELY TO SLIDE DOWN TO 5700 LEVELS AND ANY BREACH BELOW THIS POINT WOULD TAKE NIFTY DOWN TO 5760 LEVELS AND ANY FURTHER BREACH BELOW THIS POINT WE WOULD SEE SUPPORT COMING IN AT 5637 LEVELS AND ANY BREACH BELOW THIS POINT WE MAY SEE THE MAJOR SUPPORT AT 5600 LEVELS AND ANY CLOSE BELOW 5600 WE CAN SEE ANOTHER 300 TO 400 POINTS DECLINE FROM THERE ON. ONE IS ADVISED TO EXIT CEMENTING STOCKS AS THEY MAY UNDERPERFORM IN THE DAYS AHEAD AND ADVISED TO ENTER INTO IT AS ALL THE EXTERNAL FACTORS ARE SUPPORTING THE IT INDEX. STAY AWAY FROM FERTILIZERS TOO IN SHORT TERM THOUGH LONG TERM STORY IS IN TACT.
BUY JINDAL STEEL SL 689 TGT 705/717/724
BUY JINDAL SAW SL 222 TGT 225.80/227.50/230 (SHORT TERM 275)
